Shanghai’s housing market into double digit decline!
The LA Times ran a story on March 4th. on the bust of the Shanghai, China, real estate market.
In one of the world’s hottest housing markets, the last three years saw a doubling of prices. Things are now so bad now that thousands of real estate offices have closed, many homeowners have loan amounts that are greater than their properties resale value, recent buyers are fighting with developers to rescind their purchases, and banks are awaiting a wave of mortgage defaults.
Morgan Stanley's chief Asia economist said “Shanghai's housing slump is only going to worsen and imperil a significant part of the Chinese economy”. About the property now under construction, this same economist said "They'll remain empty for years!”
The similarities to our hot US bubble markets, |
